Inflation further dips to 3.79 per cent

New Delhi, Sept 7: The inflation rate further softened to 3.79 per cent for the week ended August 25, from the previous week's 3.94 per cent due to decline in the food prices.

The annual inflation rate was at 5.27 per cent during the corresponding week of the previous year, an official statement said here today.

The government's fiscal steps and RBI's monetary interventions had brought down inflation to 3.94 per cent during the week ended August 18, for the first time in more than 15 months.

Finance Minister P Chidambaram has said, ''In the last few months there has been tightening of monetary policy and credit to bring down inflation. Nevertheless, investment remains robust and it is that buoyancy in investment that is driving growth.''

The index for Manufactured Products group remained unchanged at its previous week's level of 185.6 (provisional). The index for 'Food Products' group rose by 0.2 per cent to 186.6 (Provisional) from 186.3 (Provisional) for the previous week due to higher prices of gur (three per cent) and rice bran oil, gingelly oil and soyabean oil (one per cent each).

The index for 'Paper and Paper Products' group rose by 0.3 per cent to 194.9 (Provisional) from 194.4 (Provisional) for the previous week due to higher prices of kraft paper and mg poster paper (two per cent each).

The index for 'Chemicals and Chemicals Products' group declined marginally to 202.1 (Provisional) from 202.2 (Provisional) for the previous week due to lower prices of acid (all kinds) (two per cent) and carbon black (one per cent).

However, the prices of ayurvedic medicine liquids (four per cent) moved up.

The index for 'Non-Metallic Mineral Products' group rose by 0.2 per cent to 206.9 (Provisional) from 206.5 (Provisional) for the previous week due to rise in the prices of cement.

The index for 'Basic Metals Alloys amd Metal Products' group declined by 0.2 per cent to 243.3 (provisional) from 243.8 (provisional) for the previous week due to lower prices of zinc (11 per cent) and zinc ingots (two per cent).

However, the prices of pipes and tubes (one per cent) moved up.

UNI